India’s budget history spans over a century, with the first budget presented in 1860 by a British economist. As Finance Minister Nirmala Sitharaman prepares to present the 93rd budget on July 23, 2024, let’s take a look back at the significant moments in India’s budget history.
Who Presented India’s First Budget?
Before India gained independence from British rule, the first budget was presented by Scottish economist James Wilson in 1860. Wilson, a Liberal politician and businessman, was a member of the Indian Council responsible for finances and advising the Viceroy of India. The budget was presented exclusively in English, making it inaccessible to most locals in India.
India’s First Budget as an Independent Nation
While the 1860 budget was technically the first, India saw its first budget as a free nation on November 26, 1947. Presented by the first Finance Minister RK Shanmukham Chetty, this interim budget covered only seven months. Chetty, an economics graduate from Madras Christian College, was appointed by Prime Minister Jawaharlal Nehru. He coined the term “interim budget,” which became a standard practice during general election years.
The Historical Context of India’s First Budget
The first budget session of independent India was held at 5 pm, unlike the current 11 am sessions. Despite the country being in turmoil due to partition protests and riots, Chetty successfully presented the budget. A significant decision was that both India and Pakistan would use the same currency until September 1948. Chetty allocated Rs 92.74 crore to defense out of a total budget of Rs 197.39 crore. His opening remark was, “I rise to present the first budget of a free and independent India. This occasion may well be considered as a historical one, and I count it as a rare privilege that it has fallen to me to be the finance minister to present this Budget.”
Prime Ministers Who Presented the Budget
It is a lesser-known fact that some prime ministers have also presented the budget in the past. Jawaharlal Nehru presented the Union Budget in 1958 after Finance Minister T. T. Krishnamachari resigned. Other prime ministers who have presented the budget include Morarji Desai, Indira Gandhi, Rajiv Gandhi, and Manmohan Singh.
The Introduction of Hindi in Budget Documents
In 1955, the Union Budget was printed in both Hindi and English for the first time, a pivotal decision spearheaded by Finance Minister CD Deshmukh. Deshmukh was an advocate of prudent financial management, prioritizing government spending within available resources and avoiding excessive debt. He also played a key role in strengthening the Reserve Bank of India and implementing financial sector reforms.
